Savings accounts such as fixed rate bonds and ISAs are becoming increasingly old hat, according to Jason Butler, a partner at Bloomsbury Financial Planning.
With interest rates on many savings accounts in the UK being miserly, many savers are looking to put their money elsewhere, following less traditional avenues in the hope of making a better return on their investment. Butler says that people are 'increasingly open' to considering the possibility of taking out alternative asset investments.
“This is both good and bad news for the UK's financial market, as on the one hand it is positive evidence that people are reviewing more closely how their money is working for them, but on the other it inevitably means that some will take out alternative investments that are not suited to their individual needs,” he said.
He also warned that, whilst alternative investments may bring with them the chance of making a better return, often they do not provide the same 'security of capital' as more traditional options.
Despite Butler's claims, recent research from the Halifax revealed that ISAs are still popular amongst UK savers, with one-third of all earnings being invested in such an account following the recession.
Financial News
